EU summit adopts energy-climate strategy

European Union leaders have clinched agreement on a bold long-term strategy for energy policy and climate change aimed at leading the world in the fight against global warming, diplomats say.

The deal setting binding targets for slashing greenhouse gas emissions, developing renewable energy sources, promoting energy efficiency and using biofuels laid down a challenge to the United States and other industrialised powers to follow suit.

"There's a deal on the whole package," one diplomat said. He explained that while the 27 leaders had set binding Europe-wide objectives, "setting national targets will be done with the consent of the member states".

German Chancellor Angela Merkel, who chaired a two-day summit, put forward the key compromise to secure agreement to set a legally binding target for renewable fuels such as solar, wind and hydro-electric power - the most contentious issue.

Leaders accepted the target of 20 per cent of renewable sources in EU energy consumption by 2020 in exchange for flexibility on each country's contribution to the common goal.

"This text is indeed a breakthrough as regards the environment and climate change policy of the European Union," Ms Merkel said.

Germany added wording to win over states reliant on nuclear energy, led by France, or coal, such as Poland, and small countries with few energy resources, such as Cyprus and Malta, by adding references to the national energy mix.

"Differentiated national overall targets" for renewables should be set "with due regard to a fair and adequate allocation taking account of different national starting points", it said.

On Thursday, the 27 leaders committed themselves to a target of reducing EU greenhouse gas emissions, blamed for heating the planet, by 20 per cent by 2020 and offered to go to 30 per cent if major nations such as the United States, Russia, China and India follow suit.

European Commission President Jose Manuel Barroso called it "the most ambitious package ever agreed by any commission or any group of countries on energy security and climate protection.

You have no doubt been hearing a lot about the Paris Agreement and know that it pertains to climate change, but are too embarrassed at this stage to ask for an overall explanation of what it's all about.